23andMe resumes data auction with a $305 million offer from its ex-CEO
In the rapidly evolving landscape of consumer genetics, 23andMe's recent bankruptcy and subsequent auction of its genetic database has sparked a wave of multi-state lawsuits and congressional scrutiny. The sale of such sensitive data, which includes names, birth years, relationship labels, family names, and locations, raises significant ethical and legal questions.
Last year, the biotech company's attempt to launch a subscription service with personalized reports and advice failed, marking a significant setback in its business operations. The company filed for bankruptcy in March, with its worth plummeting nearly to zero. The exact cause of 23andMe's collapse remains elusive, but the data breach that exposed information about 6.9 million people in 2023 may have played a role. It took the company five months to notice the hack and two months to admit its true severity.
The U.S. bankruptcy code does not currently define genetic data as "personally identifiable information," leaving consumers vulnerable to potential misuse or transfer of their information without control. Twenty-seven states plus the District of Columbia have filed a joint lawsuit to block 23andMe’s sale of its customers' genetic information without explicit consent. The lawsuit emphasizes that consumers did not consent to such a transfer under bankruptcy proceedings.
Congressional oversight has also been focused on the privacy, national security, and ethical challenges posed by the sale of large genetic databases like 23andMe’s. The House Committee on Oversight and Government Reform has held hearings to address these concerns, with members stressing the need for legislative action to ensure the safety and privacy of Americans’ genetic information.
Amy Wojcicki, former CEO of 23andMe, has made an opening bid of $305 million for the company. Wojcicki now has the backing of an unnamed Fortune 500 company valued at over $400 billion. The bidder who wins the auction has agreed to comply with the existing promise of data deletion upon request. California's Attorney General has urged people to request that 23andMe delete their data.
Ethical considerations emphasize the need for explicit informed consent, stringent privacy protections, and safeguards against misuse or unauthorized sale of DNA information. The sale of DNA, which cannot be changed like a password or an email address, should require more than implicit consent. Genetic data is uniquely sensitive because it is immutable, contains deeply personal health and ancestry information, and cannot be replaced if compromised.
Lawmakers have opened an investigation into the safety of Americans' personal information in the auction. The ongoing auction includes the sale of 23andMe's database of over 15 million people's DNA. The company initially tried to place blame on customers for the data breach, but it now faces active legal challenges and legislative scrutiny to protect consumers' rights to privacy and data control.
- Given the ongoing controversy surrounding 23andMe's sale of its genetic database, future legislation might address technology and finance aspects of personal genetic information, ensuring businesses like 23andMe comply with consumers' data control rights.
- Amidst the ethical debates and legal disputes arising from the auction of 23andMe's database, Gizmodo has reported that tech giants from the tech and finance industries are closely monitoring the situation, potentially seeing opportunities to invest in or acquire similar genetic data platforms.
- As the future of consumer genetics continues to face questions and scrutiny, technology companies like 23andMe must prioritize ethical considerations, implementing solid data privacy protections and informed consent practices to build trust among users and shield themselves from potential legal and business repercussions.
